TORONTO — Canada's main stock index eked out a small gain Tuesday with varied results among sectors, while U.S. markets were also up.
The S&P/TSX composite index was up 41.79 points at 19,898.86.
In New York, the Dow Jones industrial average was up 186.45 points at 33,704.10. The S&P 500 index was up 27.16 points at 3,919.25, while the Nasdaq composite was up 106.98 points at 10,742.63.
The TSX had a mixed day, with energy pulling the index down before reversing some of its losses later in the day. Energy, industrials, telecom and utilities were all dragging, while sectors like financials, metals and technology helped buoy the index.
Energy was the biggest drag on the TSX throughout the day, said Michael Currie, senior investment adviser at TD Wealth, despite mostly positive news for the energy sector and a small gain in oil prices.
“There seems to be optimism on the China reopening, and it seems that all the trouble in Europe isn’t going to be as bad as they thought,” he said.
Among specific energy companies, results diverged as well, with gains for some major American players like Exxon and Chevron while Canadian firms like Suncor and Cenovus posted losses.
Meanwhile, the U.S. markets continued their timid but positive start to the year, Currie said.
Currie said it feels like the markets are sitting and waiting with restrained optimism, with investors looking ahead to interest rate decisions by central banks.
For investors right now, "it's all about what's coming out of the (Federal Reserve) and the Bank of Canada. It's very little to do with the actual fundamentals of the companies themselves," he said.
Canada is up first with a rate decision later in January, and Currie said while another hike is the most likely scenario, if it’s just a quarter of a percentage point investors will be happy — especially if that hike is accompanied by messaging from the central bank that it’s the last one.
Investors may have been relieved when Federal Reserve Chairman Jerome Powell, speaking in Sweden, didn't comment on U.S. monetary policy, said Currie.
"He gave them some little bit of breathing room there."
The Canadian dollar traded for 74.51 cents US compared with 74.76 cents US on Monday.
The February crude oil contract was up 49 cents at US$75.12 per barrel and the February natural gas contract was down 27 cents at US$3.64 per mmBTU.
The February gold contract was down US$1.30 at US$1,876.50 an ounceand the March copper contract was up five cents at US$4.08 a pound.
This report by The Canadian Press was first published Jan. 10, 2023.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
Rosa Saba, The Canadian Press
